ESMA_QA_1383

Status: ✅ Answer Published

Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/1383

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Regulatory Context

Regulation : SECR

Level 1 Regulation: Securitisation Regulation (EU) 2017/2402

Level 2 Regulation: No information available

Level 3 Regulation: No information available

Topic: Securitisation Disclosure Templates

Subject Matter: Annex 3: Underlying Exposures - Commercial Real Estate - Non-Payments on equal ranking Underlying Exposures

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Question

Submission Date: 15 November 2019

How must this ‘Default of Property’ be understood in the context of this field? Do Non-Payments On Equal Ranking Underlying Exposures Constitute Default Of Property?

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ESMA Answer

Answer Date: 15-11-2019

[ESMA 33-128-563 Securitisation Q&A, Q&A 5.5.6] The concept of “Default of Property” understood as a reference to the underlying exposure. In other words, this field must be completed by reference to whether non-payments on equal ranking underlying exposures constitute a default of such underlying exposures (with the term “equal ranking” given its legal meaning) — commonly referred to as ‘cross-default’ clauses.

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This document was automatically extracted from the ESMA EMIR Q&A database.